The Inclusion of Sanctions Clauses in International Oil Trading Contracts: Drafting, Enforcement, and Geopolitical Realities.
Learning Outcomes:
Participants will:
Understand how sanctions shape the legal and operational environment of oil trade
Be able to draft and interpret sanctions clauses with legal precision
Identify compliance strategies and risk controls in volatile geopolitical environments
Gain practical tools to manage disputes and disruptions in trading contracts
Apply practical tools to align national interests with global trading strategies
TRAINING OBJECTIVES
- Understand the legal basis and commercial rationale for sanctions clauses in oil trading contracts.
- Learn how to draft enforceable sanctions language that reflects evolving geopolitical risk.
- Explore how sanctions impact contract performance, force majeure, and termination.
- Examine global sanctions regimes (U.S., EU, UK, UN) and their implications for trade.
- Apply practical risk mitigation strategies in politically exposed transactions.
WHO SHOULD ATTEND?
Legal advisors and contract managers in oil & gas
Compliance officers and risk managers
Crude and refined product traders
Government officials and regulators
Professionals from NOCs and IOCs
Course Modules:
Module 1,2: Overview of Sanctions in the Energy Sector
Definition and types of sanctions (unilateral vs. multilateral)
Targeted sectors: upstream, shipping, insurance, payments
Overview of key regulators: OFAC (U.S.), EU Commission, UK OFSI, UN Security Council
Case studies: Iran, Russia, Venezuela
Module 3,4: Impact of Sanctions on Oil Trading Contracts
Restrictions on buyers, sellers, vessels, payment terms
Impact on delivery obligations and contract continuity
Insurance, banking, and logistical constraints
Secondary sanctions and reputational risk
Module 5,6: Drafting Sanctions Clauses
Key components of sanctions clauses in SPAs, trading agreements, charters
Material adverse change (MAC) and force majeure interaction
Trigger events, representation & warranties, and compliance covenants
Sample clause walkthroughs: robust vs. weak language
Termination rights and indemnity issues
Module 7,8: Enforcement, Compliance, and Disputes
Contract enforcement under sanction constraints
Arbitration vs. litigation: jurisdictional hurdles
Compliance best practices: KYC, due diligence, screening
Responding to real-time sanctions updates
Dealing with frozen payments and seized cargoes
Module 9,10: Real-World Case Studies and Exercises
Case 1: OFAC sanctions and interrupted cargo delivery
Case 2: Use of intermediaries and disguised origin
Case 3: Trading via neutral jurisdictions: legal and ethical risks
Drafting workshop: build a model sanctions clause
Simulation: handling a force majeure declaration due to sudden sanctions